notes to the financial statements - Far East Orchard Limited

NOTES TO THE FINANCIAL STATEMENTS
For the financial year ended 31 December 2008
38. New or revised accounting standards and interpretations
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Certain new standards, amendments and interpretations to existing standards have been published and are
mandatory for the Group’s accounting periods beginning on or after 1 January 2009 or later periods and which the
Group has not early adopted. The Group’s assessment of the impact of adopting those standards, amendments
and interpretations that are relevant to the Group is set out below:
(a) FRS 1(R) Presentation of Financial Statements (effective for annual periods beginning on or after 1 January 2009)
The revised standard requires:
• All changes in equity arising from transactions with owners in their capacity as owners to be presented
separately from components of comprehensive income;
• Components of comprehensive income not to be included in statement of changes in equity;
• Items of income and expenses and components of other comprehensive income to be presented either
in a single statement of comprehensive income with subtotals, or in two separate statements (a separate
statement of profit and loss followed by a statement of comprehensive income);
• Presentation of restated balance sheet as at the beginning of the comparative period when entities make
restatements or reclassifications of comparative information.
The revisions also include changes in the titles of some of the financial statements primary statements.
The Group will apply the revised standard from 1 January 2009 and provide comparative information that conforms
to the requirements of the revised standard. The key impact of the application of the revised standard is the
presentation of an additional primary statement, that is, the statement of comprehensive income.
(b) FRS 108 Operating Segments (effective for annual periods beginning on or after 1 January 2009)
FRS 108 supersedes FRS 14 Segment Reporting and requires the Group to report the financial performance of
its operating segments based on the information used internally by management for evaluating segment
performance and deciding on allocation of resources. Such information may be different from the information
included in the financial statements, and the basis of its preparation and reconciliation to the amounts recognised
in the financial statements shall be disclosed.
The Group will apply FRS 108 from 1 January 2009 and provide comparative information that conforms to the
requirements of FRS 108. The Group expects the new operating segments to be similar to the business segments
currently disclosed.
(c) Revised FRS 23 Borrowing Costs (effective for annual periods beginning on or after 1 January 2009)
The revised standard removes the option to recognise immediately as an expense borrowing costs that are
attributable to qualifying assets, except for those borrowing costs on qualifying assets that are measured at fair
value or inventories that are manufactured or produced in large quantities on a repetitive basis.
The Group will apply the revised FRS 23 from 1 January 2009. As the Group has been capitalising the relevant
borrowing costs, the revised standard is not expected to have any impact to the Group.
39. Authorisation of financial statements
These financial statements were authorised for issue in accordance with a resolution of the Board of Directors of
Orchard Parade Holdings Limited on 27 March 2009.
ANNUAL REPORT 2008 ORCHARD PARADE HOLDINGS LIMITED